The Centrino platform was adopted in 40% of global notebook PC shipment volume in the first quarter of 2004. Shipment share of embedded WLAN notebook PCs also grew as Dell and HP continued introducing 802.11g modules. However, due to increased inventories among vendors such as HP and Toshiba, global notebook PC shipment volume suffered a sequential 17% decline in the first quarter of 2004, thus affecting WLAN NIC shipment volume. Moreover, after robust sales in the fourth quarter of 2003, demand in retail channels slowed in the first quarter of 2004. Due to channel player stocktaking and fewer working days, January saw WLAN shipment volume continue its substantial slide until mid-February, when orders began to pick up again. As a result, in the first quarter of 2004, WLAN shipment volume suffered a slight sequential drop and growth slowed after a strong performance throughout 2003.

Taiwanese WLAN shipment value reached US$277.2 million in the first quarter of 2004, soaring 87% year-on-year, but dropping 7% sequentially. WLAN NIC prices, having already bottomed-out, saw decelerated declines. Higher-priced 802.11g shipment share increased 75%, slowing the overall NIC price decline. As new WLAN chip suppliers made inroads into the 802.11g segment with low-price strategies, WLAN AP price suffered a 14% decline sequentially. 

In the second quarter of 2004, retail channels the North American market still need to brave the traditionally slow season while European retail channel players will experience increased demand for WLAN. Global notebook PC shipment volume is also expected to rise 10% in the second quarter of 2004, thus generating more orders. However, price reduction appears unlikely given the growing cost of raw materials. Tight supply of components such as flash memory will also affect WLAN access point shipment. Overall, Taiwanese WLAN shipment volume is expected to reach approximately 13.2 million units in the second quarter.